<i>Economics of profit power </i>

Mia de Kuijper

Mia de Kuijper, a Harvard-trained economist and investment adviser, has said turning profit power into sustainable wealth requires new and innovative strategies.
Her suggestion comes as a new economy is emerging from the global financial crisis.
At a seminar on 'Profit Power Economics' organised by Business School of BRAC University in Dhaka yesterday, de Kuijper explained what profit power means to companies.
"Profit power is economic clout -- the ability of a company to hold on to the value it itself has created," she said.
The author of recently published book "Profit Power Economics", de Kuijper focused on the fundamentals of the global economy and explained how companies and individuals could create sustainable wealth.
The book examines the strategic implications of what she calls “transparent economy". The book's unique framework is designed for achieving high returns.
Based on research and illustrated with lively lessons from the experiences of the author and other successful investors and leaders, Profit Power Economics draws a detailed picture of the new competitive arena and gives readers a step-by-step approach to build (or find) exceptionally high-return enterprises.
Profit power is also meant for a company to extract a share of profits from its competitors, to create incremental value for itself and for its partners in business relationships, and to shape the risks the company and others will take on.
de Kuijper presented a keynote paper based on her book.
Kuijper showed four rules of success for the business: (a) focus on power nodes for choosing and valuing investments, (b) structure and manage global enterprises with new business models and power relationships, (c) fight fiercely against three-dimensional competitive threats, and (d) navigate today's shifting market dynamics by using insights about powerlaw network dynamics.
The economist showed 12 contemporary sources of profit nodes that include brand, secret ingredients, regulatory protection, focused financial resources, customer base with switching costs, proprietary processes and distribution of gateways.
“Control is just one and you are on the road to high returns,” she said.
de Kuijper who was associated with companies such as Royal Dutch Shell and PepsiCo also said perfect information enables a company to earn profit.
BRAC University Vice-chancellor Jamilur Reza Chowdhury chaired the seminar, also attended by academicians.